NEW YORK, Jan 19, 2026, 2:15 PM ET — Market closed
U.S. utility stocks are set to resume trading Tuesday following Monday’s Martin Luther King Jr. Day holiday closure on Wall Street. The Utilities Select Sector SPDR ETF (XLU) slipped 0.5% to close Friday at $43.39. (New York Stock Exchange)
The timing is crucial since utilities often act as “bond proxies” — they offer steady dividends, carry significant debt, and usually track long-term interest rates. The upcoming U.S. PCE inflation report drops on Jan. 22, followed by the Federal Reserve meeting on Jan. 27-28. Both are expected to shift rate expectations. (Bureau of Economic Analysis)
The bond market is also closed Monday, leaving no new data on Treasuries — crucial for rate-sensitive sectors like utilities. Traders will have to wait until cash trading restarts Tuesday to see that signal again. (MarketWatch)
Friday saw the 10-year Treasury yield climb roughly 6.7 basis points to 4.227%, with the S&P 500 edging down 0.06% to 6,940.01. Ameriprise chief market strategist Anthony Saglimbene pointed to upcoming earnings reports as a key factor behind the market’s “flat-lining.” (Reuters)
Broad U.S. equity exposure barely shifted: the SPDR S&P 500 ETF Trust (SPY) finished down roughly 0.1%. Meanwhile, long-dated Treasuries dipped, with the iShares 20+ Year Treasury Bond ETF (TLT) falling about 0.6%, a decline that usually weighs on dividend-heavy defensive stocks.
Trade news could muddy the usual “rates up, utilities down” narrative. U.S. stock futures fell Monday after President Donald Trump threatened a 10% tariff on imports from eight European nations over a Greenland dispute. Stephen Innes of SPI Asset Management called it “not a short-term liquidation story,” but rather “a slow rebalancing story.” (AP News)
Utilities remain a go-to for income, as reflected in the data: XLU’s trailing dividend yield clocks in around 2.7%, per Investing.com. That yield stacks up against Treasuries, especially when bond yields rise. (Investing)
Friday’s drop followed a solid week for XLU, which gained roughly 2% from Jan. 9 through Jan. 16 based on prior closes. (Investing)
Friday saw modest gains for some of the top utility stocks. NextEra Energy climbed roughly 1.7%, Duke Energy edged up about 0.2%, and Southern Co ticked higher by around 0.1%, according to the latest closing prices.
NextEra’s fourth-quarter and full-year results are set to drop before the New York Stock Exchange opens on Jan. 27, marking a key event on many utilities watchlists, the company has confirmed. (NextEra Energy Investor Relations)
Thursday’s inflation figure could come with added noise. Reuters says the BEA will average September and November CPI data to estimate October’s inflation. Delayed PCE inflation numbers for October and November are set for Jan. 22, pushed back by a government shutdown that disrupted normal reporting. Any surprises here could ripple through yields and utilities. (Reuters)
Utilities traders face a quick succession of events: Treasury and U.S. stock markets reopen Tuesday, the PCE price index drops Jan. 22, and the Fed holds its two-day meeting Jan. 27-28, wrapping up with a press conference on Jan. 28. (Investing)
